SPRINGFIELD, Mass. (AP) — Smith & Wesson is laying off about 125 employees, or 15 percent of its work force, blaming slumping sales and a boycott by buyers angry over its gun-safety agreement with the government.
The workers, including some managers, will be laid off within the next week in Springfield, home to 725 employees. The company also has 100 other employees in Houlton, Maine.
"One of the frustrating things for us is that some of the damage has been done by the pro-gun side," spokesman Ken Jorgensen said Thursday.
Smith & Wesson has been faced with angry competitors and buyers since it signed the agreement with municipal, state and federal officials in March.
Under the agreement, the company promised to demand background checks on gun-show buyers, install safety locks and work on high-tech guns that can be fired only by their owner. In exchange, public officials agreed to drop Smith & Wesson from lawsuits against the industry.
Jorgensen said the company feels legally bound to the accord, but talks are under way with public officials to spell out "clarifications." He declined to offer details.
"Hopefully, that will be positive for everyone," he said.
Patrick O'Malley, a National Rifle Association lobbyist, said Smith & Wesson should scrap the entire agreement.
John Velleco, a spokesman for the boycott-backing Gun Owners of America, called the layoffs "a sign that the boycott is working and people don't want to support a business that is in collusion with the most antigun administration in the country's history."
Government officials have enlisted dozens of cities to give preference to Smith & Wesson when buying guns for law enforcement. The idea was to encourage other gunmakers to sign on, but so far the plan has not worked.
A spokeswoman for U.S. Housing and Urban Development Secretary Andrew Cuomo, who helped the Clinton administration strike the deal, had no immediate comment Thursday on its future prospects.
Instead of joining in, some other gunmakers have sued the federal government and some cities for alleged restraint of trade.
The company is the nation's oldest gunmaker and was its biggest handgun manufacturer for years. But it was surpassed by Sturm, Ruger & Co. last summer and has been fighting to boost sales for months. In July, it sent many workers home and suspended most of its manufacturing.
Recent weeks have brought other signs of turmoil.
On Oct. 6, the gunmaker announced it was replacing Ed Shultz, its president since 1992, with company veteran George Colclough. Smith & Wesson's British owner, Tomkins PLC, announced the next week that its longtime chief executive, Greg Hutchings, was leaving amid media reports about excessive company perks.
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